[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

'Bangladesh Remittance Fair' to be held in NY next month

A two-day "Fourth Bangladesh Remittance Fair 2025" will be held in New York (NY) on April 19-20 to increase remittance flow from the USA to Bangladesh. The Bangladesh-USA Chamber of Commerce and Industry (BUCCI) and USA-Bangladesh Business Links will jointly organize the fair at Jackson Heights in

thefinancialexpress.com.bd

'Bangladesh Remittance Fair' to be held in NY next month
Published :
Mar 21, 2025 13:24
Updated :
Mar 21, 2025 13:24

A two-day "Fourth Bangladesh Remittance Fair 2025" will be held in New York (NY) on April 19-20 to increase remittance flow from the USA to Bangladesh.

The Bangladesh-USA Chamber of Commerce and Industry (BUCCI) and USA-Bangladesh Business Links will jointly organize the fair at Jackson Heights in New York, USA, BSS reported citing a press release on Friday.

The Bangladesh Association of Banks (BAB) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) are the organising partners of the fair.

Bangladesh Bank (BB) Governor Dr Ahsan H Mansur is scheduled to take part as the chief guest at the inauguration ceremony of the fair.

The event will bring together key stakeholders from both the public and private sectors, such as banks, mobile financial service providers, app developers, money exchange houses, and channel partners to showcase their products and services, share insights, explore opportunities, and enhance the security and efficiency of remittance channels.

The event will feature a rich programme, including demonstrations, presentations, discussions, Q&A sessions, and a Networking Dinner.

The networking sessions will see participation from the Department of Financial Services, New York State, and leading money exchange companies, providing a unique opportunity to engage directly with key industry representatives, explore potential partnerships, and stay abreast of the latest trends and innovations in the remittance sector.

Notably, a number of banks, money exchange houses, and remittance channel partners, such as Dhaka Bank PLC, Islami Bank Bangladesh PLC, and Uttara Bank PLC, had earlier participated in the fair.

Islami Bank Bangladesh PLC, National Bank Limited, and Bank Asia PLC were awarded the Top Remittance Bank Receiver Award 2024, the Top Remittance Channel Partner 2024 went to BA Express, Sunman Global Express, and Standard Express, while the Top Individual Remittance Award 2024 was given to 10 remitters at the closing and award ceremony of the "Third Bangladesh Remittance Fair-2024."​

 

[Saif]

Large industries see double-digit growth in Dec riding on RMG

Country's large-scale manufacturing sector recorded a double-digit growth of 10.37 per cent in December last year, rising from the same period in 2023, according to data released last week by the Bangladesh Bureau of Statistics (BBS). Large-scale manufacturing contributes over 11 per cent to the c

thefinancialexpress.com.bd

Large industries see double-digit growth in Dec riding on RMG
Jasim Uddin Haroon
Published :
Mar 23, 2025 00:06
Updated :
Mar 23, 2025 00:06

Country's large-scale manufacturing sector recorded a double-digit growth of 10.37 per cent in December last year, rising from the same period in 2023, according to data released last week by the Bangladesh Bureau of Statistics (BBS).

Large-scale manufacturing contributes over 11 per cent to the country's GDP and serves as a key indicator of industrial performance.

The quantum index of large manufacturing industries reached 246.58 points in December 2024, up from 223.42 in December 2023.

Of the 23 manufacturing subsectors, 14 posted growth, while seven saw declines.

Sectors that contracted during the months included tobacco products, textiles, leather, chemicals, paper, computer-related industries, and "other manufacturing" sectors.

However, the large industries registered sluggish growth earlier in the current fiscal year (FY 2024-25), with the index rising by only 3.85 per cent in July-September quarter (Q1).

The December rebound was, however, largely driven by the ready-made garments (RMG) sector that holds the largest weight in the index at 61 out of 100. Any fluctuation in RMG significantly impacts the overall manufacturing index.

Other key industries that expanded in December last included: beverages 21 per cent, food 10.11 per cent, wood and related industries 15 per cent, printing 19 per cent, electrical equipment 16 per cent, rubber 14 per cent, fabricated metals 12.73 per cent, machinery and equipment 28.88 per cent, pharmaceuticals and furniture 4.0 per cent each during the period under review.

The strong performance in manufacturing aligns with the Purchasing Managers' Index (PMI), which stood at 61.7 in December, indicating economic expansion.

Industry experts say political unrest-leading to the fall of the Awami League government-weighed on growth in the Q1 of this FY.

Mr. Anwar-ul Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries (BCI), identified high lending rates as a major barrier to business expansion further.

The lending rate is a barrier to further expansion of business which was also associated with poor buying orders, he said.

Mr. Syed Nazrul Islam, a former leader of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and managing director of Well Dress, said that clothing orders increased after the Q1, although some orders had previously shifted to India and Pakistan.

Economists believe that the economic activity is gradually recovering, driven by a stabilised foreign exchange market and rising domestic demand.

Dr. Zahid Hussain, former lead economist at the World Bank's Dhaka office, said that the student-led uprising in mid-July caused temporary setbacks, He, however, expressed optimism about economic recovery.

"Inflation remains a challenge for industrial expansion but it is gradually easing," he said, adding that the improvement is also reflected in the country's export earnings.

The export earnings were up by 10.41 per cent to US$32.93 billion in July-February period of this FY.

Dr. M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, attributed the growth in the manufacturing sector to seasonal factors and a strong rebound in RMG.

He said that with the RMG sector making up over 60 per cent of the index and growing over 16 per cent in December, it has been the key driver of overall industrial growth.

He expected continued improvements in the clothing sector in the coming months.

The economist also predicted that climate change could boost beverage production in the coming months as seen during last summer.

However, economists have warned that the high rate of inflation could dampen demand for goods and services, potentially slowing down broader economic recovery.​

 

[Saif]

Dr Yunus invites global investors to explore 'extraordinary opportunities' in Bangladesh

Ahead of the Bangladesh Investment Summit, Chief Adviser Professor Muhammad Yunus has invited Bangladesh's friends, partners, and global leaders to explore the extraordinary investment opportunities that Bangladesh has to offer. "There has never been a better moment to explore the extraordinary in

thefinancialexpress.com.bd

Dr Yunus invites global investors to explore 'extraordinary opportunities' in Bangladesh
UNB
Published :
Mar 22, 2025 10:39
Updated :
Mar 22, 2025 10:39

Ahead of the Bangladesh Investment Summit, Chief Adviser Professor Muhammad Yunus has invited Bangladesh's friends, partners, and global leaders to explore the extraordinary investment opportunities that Bangladesh has to offer.

"There has never been a better moment to explore the extraordinary investment opportunities in Bangladesh," he said, as the government is set to host the Bangladesh Investment Summit 2025 next month.

Dr Yunus said Bangladesh has undergone profound transformations with a forward-thinking investment climate.

"We are committed to ensuring a level playing field for all our investors," said the Chief Adviser in a message to global investors.

Dr Yunus said the Summit is a gateway for investors to gain more data-driven insights. "Come and witness the potential that Bangladesh holds for you. And join us in shaping the future of investment in one of the world's most dynamic economies."

The chief adviser said he is looking forward to welcoming global partners and investors to the new Bangladesh.

The Bangladesh Investment Summit 2025, hosted by the government of Bangladesh, showcases a new investment climate in Bangladesh, set for transformative investments and unmatched growth.

Global leaders, Fortune 500 executives, and industry pioneers will engage in discussions as Bangladesh redefines the future of investment in one of the world’s most dynamic markets.

The Executive Chairman of the Bangladesh Investment Development Authority (BIDA), Chowdhury Ashik Mahmud Bin Harun, will hold a press briefing on Sunday, said the Chief Adviser's Deputy Press Secretary, Abul Kalam Azad Majumder, on Friday.

Organised by BIDA, the Bangladesh Investment Summit 2025 — set to take place in Dhaka from April 7-10 — introduces the Excellence in Investment Award, a hallmark initiative celebrating investors shaping Bangladesh’s economic future, officials said.

This honour recognises enterprises for their transformative contributions in areas such as investment scale, environmental stewardship, regulatory adherence, and employment generation.​

 

[Saif]

Investment summit seeks to revive moribund FDI

The Bangladesh Investment Summit 2025 will be hosted at a critical juncture this year against the backdrop of foreign direct investment (FDI) inflows hitting a six-year low, raising concerns about the investment climate.

www.thedailystar.net

Investment summit seeks to revive moribund FDI
Will take place in Dhaka from April 7 to April 10

The Bangladesh Investment Summit 2025 will be hosted at a critical juncture this year against the backdrop of foreign direct investment (FDI) inflows hitting a six-year low, raising concerns about the investment climate.

Scheduled to take place from April 7 to April 10 at the InterContinental Dhaka, the event aims to attract global investors and highlight Bangladesh's evolving economic landscape.

Amid political uncertainty, stray incidents of labour unrest and economic challenges, the summit presents a crucial opportunity to restore investor confidence, showcase economic reforms, and position Bangladesh as a competitive investment destination.

FDI inflows dropped by 71 percent year-on-year, falling to $104.33 million in the July-September quarter of FY25, the lowest in six years, according to Bangladesh Bank.

The country's total FDI stock stood at $17.68 billion as of September 2024, with the United Kingdom, Singapore, and South Korea emerging as the top three investors.

The UK remains the leading investor, with $3.05 billion, primarily in banking, power, and pharmaceuticals. Singapore follows with $1.78 billion, while South Korea ranks third with $1.6 billion, driven by investments in manufacturing and telecommunications.

A recent survey by the Japan External Trade Organization (Jetro) 2024 highlighted policy inconsistency and bureaucratic hurdles as significant barriers, discouraging reinvestment and leading to capital outflows.

Japanese investors frequently cite complex approval processes, tax inconsistencies, and sudden policy shifts as challenges to long-term commitments.

While Bangladesh has made progress in infrastructure, logistical inefficiencies and slow project execution also continue to impact business operations.

Additionally, currency depreciation, inflationary pressures, and the rising cost of doing business have made the country less competitive compared to regional peers.

The Bangladesh Investment Summit 2025 presents an opportunity to reverse the downward trajectory of FDI inflows by presenting new investment opportunities and showcasing economic reforms and policy incentives.

More than 550 investors from 50 countries have registered to attend, alongside 2,500 local investors.

Chief Adviser Prof Muhammad Yunus is expected to inaugurate the summit on April 9, alongside top executives from multinational corporations.

Speaking at a press conference at the Foreign Service Academy in Dhaka, Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority, emphasised the government's commitment to investment-friendly policies and economic stability.

He assured investors that Bangladesh would not make false promises but would instead present an accurate and realistic picture of investment potential.

While acknowledging challenges, Chowdhury highlighted Bangladesh's strong economic growth, expanding industrial capabilities, and reform measures aimed at improving the ease of doing business.

Despite the current slowdown in FDI, Bangladesh remains a promising investment destination, offering a growing domestic market, competitive labour costs, and strategic geographic positioning, he said.

However, he acknowledged that sustaining long-term investor interest will require policy consistency, infrastructure improvements, and regulatory streamlining.

The Investment Summit 2025 is expected to serve as a catalyst for renewed investor interest, allowing global businesses to explore Bangladesh's opportunities while giving policymakers a platform to address investor concerns, he added.​

 

[Saif]

IMF loan needed to secure support from other lenders

Availing loans from the International Monetary Fund (IMF) helps to get support from other development partners, which is needed to meet resource gaps in the budget, Finance Adviser Salehuddin Ahmed said yesterday.

www.thedailystar.net

IMF loan needed to secure support from other lenders
Finance Adviser Salehuddin Ahmed says

Availing loans from the International Monetary Fund (IMF) helps to get support from other development partners, which is needed to meet resource gaps in the budget, Finance Adviser Salehuddin Ahmed said yesterday.

"If any institution does not grant a loan, other institutions raise questions about why it did not materialise," Salehuddin said.

As such, if Bangladesh does not take loans from the IMF for fear of stringent conditions, there is a possibility of losing loan opportunities from other institutions such as the World Bank, Japan International Cooperation Agency and Asian Development Bank.

Salehuddin made these remarks while replying to queries at a pre-budget discussion with members of the Economic Reporters' Forum (ERF) at the finance ministry office in Dhaka.

The fourth tranche of the IMF's $4.7 billion loan to Bangladesh was supposed to be disbursed in February. However, the IMF deferred the disbursement to June as Bangladesh could not meet prior conditions.

It is now expected that the IMF will disburse two instalments simultaneously in June.

A mission from the IMF is scheduled to visit Bangladesh next month to review the latest development of the loan programme.

At the discussion, the adviser said he was hopeful that the IMF would disburse two instalments in June.

Replying to a query, the adviser said he was hopeful that Bangladesh would be able to meet the prior conditions to avail the instalments by June.

The government has to borrow from domestic and foreign sources to meet the financing gap in the budget and this support is received from various organisations, such as the IMF, ADB and World Bank.

In recent years, it has been seen that the government utilises $10 billion to $11 billion in foreign loans to finance the budget. Of the amount, $3 billion to $4 billion is received from these institutions in the form of budgetary support.

Md Abdur Rahman Khan, chairman of the National Board of Revenue, said the upcoming budget would be business-friendly and facilitate trade. There are no plans to increase the tax burden on businesspeople, he added.

Finance Secretary Md Khairuzzaman Mozumder said the government will increase the allocation for the health, education and ICT sectors in the next budget.

Salehuddin also said the government has been working to make a separate Banking Resolution Act so that the bad banks can exit. However, it must be ensured that the depositors will get back their money.

He added that the government has no plans to form a banking commission at present.

Salehuddin added that although the burden of subsidies is already high, subsidies will continue in the agricultural sector in the next budget.

The number of beneficiaries in the social safety net will be widened in the next budget, he also said.

ERF President Doulot Akter Mala presented the ERF's budget proposals to the finance adviser. Among others, ERF General Secretary Abul Kashem was also present.​

 

[Saif]

Forex market steadies as dollar inflows go up

The country’s foreign exchange market is stabilising thanks to a surge in US dollar (USD) inflows, driven by higher remittances, stronger export earnings and tighter oversight by the central bank.

www.thedailystar.net

Forex market steadies as dollar inflows go up

The country's foreign exchange market is stabilising thanks to a surge in US dollar (USD) inflows, driven by higher remittances, stronger export earnings and tighter oversight by the central bank.

Liquidity in the forex market has improved, evident in banks' net open positions (NOP) -- the difference between their foreign currency assets and liabilities.

Banks' NOP reached $550 million as of 20 March, up from around $150 million earlier in the month, according to Bangladesh Bank data.

Over the past few months, the NOP had fluctuated between $250 million and $300 million, central bank officials said.

Industry insiders attributed the NOP increase to a rise in the inflow of the US dollar, which indicates that the foreign exchange market is increasingly gaining stability.

Bankers say remittances started to climb following the political changeover in August last year, while export growth further bolstered foreign exchange reserves.

"The forex market has stabilised in recent months due to higher dollar inflows," said Mirza Elias Uddin Ahmed, managing director and CEO of Jamuna Bank.

"Remittances have played a key role in boosting USD availability," said Ahmed.

In the first 23 days of March, remittances hit a record $2.63 billion ahead of Eid-ul-Fitr, the biggest religious festival for Muslims.

Industry insiders anticipate that the figure could reach $3 billion by the end of March -- an all-time high.

The upward trend in remittances began after the political changeover in August last year.

In September, remittances jumped 80.28 percent year-on-year to $2.4 billion, central bank data shows.

The momentum continued, with inflows of $2.39 billion in October, $2.19 billion in November, $2.63 billion in December, $2.18 billion in January and $2.52 billion in February.

According to Jamuna Bank CEO Ahmed, demand for hundi and hawala, illegal cross-border transfer systems, have dropped since authorities cracked down on those involved after the changeover. This has further funnelled remittances through formal banking channels.

"Stricter central bank monitoring has also curbed speculative trading, helping steady the market," he added.

Meanwhile, export earnings rose by 2.77 percent to $3.97 billion in February, according to the Export Promotion Bureau (EPB).

Foreign exchange reserves now stand at $20.01 billion, based on the International Monetary Fund (IMF) calculations.

The interbank exchange rate remains pegged at Tk 122 per USD -- an unofficial central bank directive.

"While banks quote rates around this midpoint, forward transactions often exceed it," Ahmed explained.

Apart from the forex market, the local currency market remains stable despite the Eid rush, according to central bank officials.

They said that except for some weak and troubled banks, the majority of banks now have excess liquidity despite significant cash withdrawal pressure ahead of the Eid festival.

The overnight call money rate, the interest on short-term interbank loans, fell to 9.95 percent on 25 March from over 10 percent a month earlier, according to central bank data, as liquidity demand eased.​

 

[Saif]

Next ADP likely to be worth Tk 2.30t

A relatively fat development budget worth Tk 2.30 trillion is likely to be prepared for the next fiscal year, too, by the interim government notwithstanding a staggeringly low execution of the outgoing ADP. By official count, only a fourth of the total annual de

thefinancialexpress.com.bd

Next ADP likely to be worth Tk 2.30t
Ought to be pruned suiting financing trend: Dr Zahid
Syful Islam
Published :
Mar 26, 2025 23:54
Updated :
Mar 26, 2025 23:54

A relatively fat development budget worth Tk 2.30 trillion is likely to be prepared for the next fiscal year, too, by the interim government notwithstanding a staggeringly low execution of the outgoing ADP.

By official count, only a fourth of the total annual development programme or ADP for the fiscal year 2024-25 had been implemented in eight months to this February. Also, its size underwent a significant pruning.

The size of the ADP in the upcoming financial year may set at Tk 2.30 trillion to meet fund demands made by different ministries and divisions, finance ministry officials said.

However, the finance officials find the new ADP outsized compared to the implementation capacity of the ministries and presume that it will also remain largely unimplemented.

The original ADP allocation for the outgoing fiscal year 2024-25 was Tk 2.65 trillion which was revised down by Tk 49 billion to Tk 2.16 trillion earlier this month following a big implementation gap.

Data show that the ADP-execution rate during the July-February period of FY25 was 24.27 per cent, 6.91-percentage-point lower than that of the same period of the past fiscal year.

The spending happens to be lowest in last 14 years, which reflects the agencies' inabilities to improve up their under-par implementation abilities.

In the same period in the previous fiscal year, the ADP-execution rate was 31.18 per cent of the total allocation, data available with the Implementation Monitoring and Evaluation Division (IMED) show.

Officials see political instability from the very beginning of the current fiscal year and an "inactive" administration following regime change as drags behind the slow implementation of the development programme.

They fear that this fiscal's ADP implementation could be one of the lowest in the country's history and the agencies may fail to spend the entire funds given to them in the revised ADP, too.

Finance Division secretary Dr Khairuzzaman Mozumder Tuesday said proposals were there to remove the less-important projects and that the government was now doing the trimming.

He aid the ADP came down from Tk 2.65 trillion to Tk 2.16 trillion in the revised budget. "Even then, there is still a lot of money which the ministries and divisions are unable to expend."

Dr Zahid Hussain, a former lead economist at World Bank's Dhaka office, thinks Tk 2.30-trillion ADP for next fiscal year will be big one considering the implementation capacity of the agencies and the trend in government revenue earnings.

"Had the government succeeded in enhancing foreign financing, the size of ADP could have been increased by raising budget deficit," he told The Financial Express.

Mr Hussain attributes low disbursement of foreign aid to non-functional administration -- evidently under the hangover of uncertainty following the turbulence associated with the changeover.

"There is US$45 billion in the pipeline but how much the implementation capacity can be increased in a year?" he asks.

The economist feels that the government needs to further lower the size of the next ADP through "considering the financing trend".​

 

[Saif]

Remittances near record $3 billion in March

The inflow was 82.46 percent higher than the same period last year, according to industry insiders.

www.thedailystar.net

Remittances near record $3 billion in March

Bangladesh received a record $2.94 billion in remittances in the first 26 days of March, driven by Eid-ul-Fitr, one of the biggest festivals for Muslims.

The inflow was 82.46 percent higher than the same period last year, according to industry insiders.

Remittance receipts are expected to surpass $3 billion by the end of the month, marking a historic high for a single month.

Apart from the Eid-related surge, the demand for hundi and hawala—illegal cross-border money transfer channels—has declined following a crackdown on operators after the political changeover, said Mirza Elias Uddin Ahmed, managing director and CEO of Jamuna Bank.

This has diverted more remittances through formal banking channels, he added.​

 

[Saif]

Forex reserve crosses $25 billion

The forex reserve in the country has crossed US $25 billion before the Eid-ul-Fitr as it was boosted by the record $2.95 billion remittance income in the first 26 days of this March. Bangladesh Bank deputy director Mohammad Ibrahim Munshi confirmed this.

en.prothomalo.com

Forex reserve crosses $25 billion
Staff Correspondent
Dhaka
Published: 28 Mar 2025, 20: 27

Dollar File photo

The forex reserve in the country has crossed US $25 billion before the Eid-ul-Fitr as it was boosted by the record $2.95 billion remittance income in the first 26 days of this March.

Bangladesh Bank deputy director Mohammad Ibrahim Munshi confirmed this.

According to the central bank, the reserve was $25.44 billion on Thursday. On the other hand, as per the calculation done using BPM-6, following the requirement of the International Monetary Fund, the amount of reserve was $20.29 billion.

The Bangladesh Bank paid $1.75 billion import bills of January and February on 9 March through Asian Clearing Union (ACU).

As a result, the actual reserve had fallen to $19.75 billion. But within just 20 days, the reserve amount increased, thanks to the remittance and export incomes.​